C.A.R.S. Activities 2011

Federal Trade Commission delves into auto scams, and invites president of CARS to present consumer perspective at public forums.

Roundtable in San Antonio, TX focuses on the impact of auto sales scams on military troops

Panelists include representatives of the auto industry. consumer organizations, and the Armed Forces, including Holly Petreaus, head of the Consumer Financial Protection Bureau Office of Servicemember Affairs and wife of Gen. David Petreaus

Roundtable in Washington, DC focuses on types of auto sales scams, and how to address them

CARS contributed to a report by ABC News zeroing in on shady auto dealer practice -- bait-and-switch financing, also known as yo-yo financing
More: See ABC News report

Tip for car buyers: The best way to avoid becoming a victim of yo-yo financing is to either pay cash or get a loan from another source, such as a credit union. NEVER get financing at the dealership. Even if the dealer claims you qualify for 0% financing, and you both sign a contract at 0%, they may try to change the terms after you drive off, and if you don't agree to a higher interest rate, they may repossess the car or report it as stolen.

U.S. House Republicans have proposed radical new legislation that, if adopted, would eliminate the ability of government agencies to simply do their jobs, and protect the American people and their families from unsafe products, pollution, and financial scams. The proposed bills, backed by powerful special interests, would give those special interests even more power than they already have. It would also let them and their cronies in Congress bully agencies that are trying to protect the public. Among the unsafe products that would be unleashed on the public:

Unsafe rental cars that are under a safety recall, but the rental car company has not bothered to have them fixed, prior to renting it to the public

Used cars that have been recalled for safety defects, but haven't been repaired yet

Over a period of more than a year, CARS provided expertise, consumer contacts, and other information that contributed to Los Angeles Times reporter Ken Bensinger's highly acclaimed multi-part series about predatory practices at "Buy Here Pay Here" auto dealerships. The dealers prey on vulnerable low-income consumers who have credit problems, or are students and have no credit histories at all, and overcharge them for shoddy vehicles that tend to break down or need major repairs soon after purchase. Some hedge fund investors see this as a growing source of funds they can package, securitize and sell on Wall Street.

Part One: A Viscious Cycle in the Used Car BusinessHow auto dealers profit from "churning" used cars that break down soon after purchase and need expensive repairs the buyers can't affordThe Los Angeles Times
by Ken Bensinger
October 30, 2011
Read more: www.latimes.com: Buy Here Pay Here part 1

Part Three: A hard road for the poor in need of carsNon-profit programs help struggling families get better jobs, improve their education, and transform their livesThe Los Angeles Times
by Ken Bensinger
November 3, 2011
Read more: www.latimes.com: Buy Here Pay Here part 3

C.A.R.S. Mission

CARS is a national, award-winning,
non-profit auto safety and consumer
advocacy organization working to
save lives, prevent injuries, and
protect consumers from
auto-related fraud and abuse.

THANK YOU!

to everyone who has supported CARS' work, including the more than 573,500 people who have contributed financially to CARS, signed or shared CARS' petitions, and / or posted personal comments.

Even when car dealers flagrantly violate consumer protection laws, you may not be able to get justice. That's because almost 100% of car dealers stick "forced arbitration" clauses into their contracts. If they cheat you, and you try to take them to court, they can just laugh at you. That's because they can get your case kicked into arbitration -- a secret, rigged process that favors big, corrupt lawbreakers. The dealer often gets to choose the arbitration firm, and even the arbitrator who hears your case. Unlike judges, arbitrators are perfectly free to ignore the law.

Dealers claim that arbitration is quick. But Jon Perz in San Diego had to wait over 8 years in "arbitration limbo" before he finally got justice, after Mossy Toyota sold him an unsafe car. CARS produced a short video exposing what happened. More than 1.3 million people have watched our video on YouTube:

See the billboard CARS displayed
right next to Mossy Toyota's car lot,
and read more about how Jon finally won.